United Nations Environ Industry UNEP UNITED NATIONS ENVIRONMENT PROGRAMME INDUSTRY AND ENVIRONMENT 39-43, QUAI ANDR-CITROEN -C1. nanny-7 -AT 1o -IZJIA I-1 A.1I. l - I[P.I 1)44 37 14 50 204 997 F (1)44 37 14 74 Copyright 1994 UNEP All rights reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means: electronic, electrostatic, magnetic tape, mechanical, photocopying, recording or otherwise, without permission in writing from the copyright holders. First edition 1994 The designations employed and the presentation of the material in this publication do not imply the expression of any opinion whatsoever on the part of the United Nations Environment Programme concerning the legal status of any country, territory, city or area or of its frontiers or boundaries. Moreover, the views expressed do not necessarily represent the decision or the stated policy of the United Nations Environment Programme, nor does citing of trade names or commercial processes constitute endorsement. UNITED NATIONS PUBLICATION Sales No. ISBN -- ------- ; ···-- -- INTRODUCTION The idea of publishing a guidance and information document on the strategies and policies that governments can use to stimulate cleaner production in developing countries and economies in transition emerged at a joint workshop sponsored by the United Nations Environment Programme Industry and Environment Centre (UNEP/IE) and the Organization for Economic Cooperation and Development (OECD) in Paris, 7-8 June 1993. A list of those who attended the workshop is given in the Appendix. Although informed by the discussions at the workshop, this document is not a workshop report, but rather a further development of the ideas discussed there. UNEP Cleaner Production Programme Cleaner Production Programme The purpose of this report is to explain to leaders in government and industry that cleaner production is likely to lead to economic benefits as well as environmental ones, that there is now an important window of opportunity that should be seized, and that cleaner production is the best way of fulfilling the requirements of Agenda 21; · * · to emphasize the importance of developing strategies and policies to implement cleaner production; to spell out an effective overall strategy in beginning a cleaner production programme; and to describe some of the instruments that are available to governments for implementing cleaner production policies. Cleaner production is an evolving concept, and experience of strategies and policies that have helped promote cleaner production is limited. As more experience is accumulated, UNEP will revise and expand this publication to outline effective strategies for initiating cleaner production programmes. In this respect, UNEP welcomes all comments and suggestions. tEIr. I: 455 Nicholas Askounes Ashford, Professor of Technology and Policy at the Massachusetts Institute of Technology, United States, prepared the draft paper on which this report is based. Robin Clarke, working in close cooperation with Jacqueline Aloisi de Larderel, Kirsten Oldenburg, Sybren de Hoo and John Kryger of UNEP/IE, prepared the final version, combining the ideas in the draft paper with other documents. CONTENTS THE NEED FOR CLEANER PRODUCTION 3 Cleaner production and sustainable development 6 Why invest in cleaner production 7 Cleaner production can be practised now 8 Fulfilling international obligations 8 THE OVERALL STRATEGY 10 Assess the existing system 10 Establish cleaner production programmes II Provide long-term finance and technical assistance 14 Moving forward 15 Applying regulations - 9 Establish a shared vision and consensus A TOOL-BOX OF POLICIES 2 3 What is cleaner production 16 16 Using economic instruments 19 Providing support measures 21 Obtaining international assistance 25 CONCLUSIONS 29 REFERENCES 30 APPENDIX 31 FURTHER INFORMATION 32 THE NEED FOR CLEANER PRODUCTION Developing countries face a dilemma today. pollution, so that its effects are less While economic development is solving harmful or apparent; problems of poverty it is causing new thirdly, by trying to control the pollution environmental problems. As a result, air, and the wastes (the so-called 'end-of- water and land become more polluted and 'Cleaner production ... isthe continuous use of industrial processes and products to pipe' or pollution control approach); and prevent the pollution of air, water and land, to reduce * fourthly, and most recently, by cleaner degraded, and in the more advanced developing countries there is already a need production through the prevention of for clean-up operations. Cleaner production pollution and waste generation at the can provide solutions to some of these source of production. wastes at source, and to minimize risks to the human problems. But it requires international cooperation and new policies in the field of The sequence of 'ignore, dilute, control and industry and the environment that provide prevent' is one which has culminated in an incentives to adopt the cleaner production activity which combines maximum positive approach. effects on the environment with substantial population and the environment.' economic savings for industry and society. Achieving this is, essentially, the goal of WHAT IS CLEANER PRODUCTION? cleaner production-defined as the Over the past 30 years, the industrialized products to prevent the pollution of air, nations have responded to pollution and water and land, reduce wastes at source, environmental degradation in four and minimize risks to the human population characteristic ways: and the environment. The essential continuous use of industrial processes and elements of the cleaner production * first, by ignoring the problem; definition are summarized in the flow chart * secondly, by diluting or dispersing the below. Essential elements of a cleaner production strategy HUMANS PRODUCTS CONTINUOUS :_~. 4 PREVENTATIVE . 11 STRATEGY FOR ~ ._ CLEANER PRODUCTION RISK REDUCTION INTEGRATIVE (air, water, land) ___J PROCESSES ENVIRONMENT _ _ _ ----. _ _ _ l -- 3 STRATEGIES AND POLICIES FOR CLEANER PRODUCTION 1 1 0 .7 1 1-1 , i - t7 i_5'A , ''M iW* IMPROVE HOUSEKEEPING Reduce raw material and product loss due to leaks, spills, drag-out, and off-specification solution. Improve monitoring of operations and maintenance of all facets of the production process. Schedule production to reduce equipment cleaning-for example, formulate light before dark paints so that vats do not have to be cleaned out between batches. Train employees in cleaner production. Improve management of inventory of raw materials and products. IN' , i !1111 1124 WHIM""'g, No 1111,1111, Spray cans: replace volatile chemicals with water-soluble formulation as aerosol. Refrigerators: replace CFCs with ammonia or other environmentallysafe materials. CHANGE INPUT MATERIAL Printing: substitute water-based ink for chemical solvent-based ink. Textiles: reduce phosphorus in wastewater by reducing use of phosphate-containing chemicals; use ultraviolet light instead of biocides in cooling tower. FIPmn_mhnnn .......... II~II. ~ ... __ an __ -- __ --- CHANGE PROCESS TECHNOLOGY ----- Filtration and washing: Use countercurrent washing, and recycle used solvent. Parts deaning: Use mechanical cleaning devices; improve draining before and after cleaning; use plastic-bead blasting. Surface coating: use electrostatic spray-coating system; use powder coating systems; use airless air-assisted spray guns. --- - - k-A ___ . P.1......... ~ ~nr __ - ....1 r.cn -- .... p-rl.ll _.. with a dry system. - -------- ------------ REUSE MATERIALS ON-SITE Printing: use a vapour-recovery system to recover organic solvents. Textiles: use ultrafiltration system to recover dye-stuffs from waste water. Metal rules: recover nickel-plating solution using an ion-exchange unit CHANGE PRODUCT Batteries: replace heavy metals (such as cadmium, Iead, merary and nickel) in batteries with less toxic materials. Cleaner production can be applied to extraction, through manufacturing and the processes used in any industry use, to the 'ultimate' disposal of the industrial products themselves. For product. production precesses, cleaner The key difference between pollution production results from one or a control and cleaner production is one combination of the following measures: of timing. Pollution control was an conserving raw materials, water and after-event, 'react and retreat' energy, eliminating toxic and approach; cleaner production is a dangerous raw materials, and reducing forward-looking, 'anticipate and the quantity and toxicity of all prevent' philosophy. Prevention, as emissions and wastes at source during well known, is always better than the production process. For products, cure. cleaner production aims to reduce the environmental, health, and safety impacts of products over their entire 4 life cycles, from raw material ~~~- - - This is not to claim that end-of-pipe technologies will never be required. The new approach is to tackle problems using a cleaner production ------------------ - THE NEED FOR CLEANER PRODUCTION It is important to stress that cleaner .e, _~u- , I, production is not simply a question of changing technology: changing attitudes means finding a new approach to the Cleaner production assessment identifies relationship between industry and the options for: environment, and simply re-thinking an industrial process or a product in terms of * X IMPROVED PRODUCT DESIGN cleaner production may produce the IMPROVED MANAGEMENT required results without importing new IMPROVED HOUSEKEEPING technology. SUBSTITUTIONS FOR TOXIC AND DANGEROUS MATERIALS PROCESSMODIFICATIONS INTERNAL REUSEOF WASTE PRODUCTS Applying know-how means improving efficiency, adopting better management techniques, changing housekeeping practices, and revising policies, procedures These lead to better planning and and institutions as necessary. selection of There are several ways of improving saving US$350 000 a year-payback technology. For example: period was less than one year; NEW PROCESS TECHNOLOGIES * change process or manufacturing which lead to increased efficiency, and smaller and fewer * used cleaner production techniques to improve process control, thus Y * t a cement company in Indonesia has END-OF-PIPE TECHNOLOGIES technology; * a metal treatment company in Singapore installed a new cleaner * change input materials; production process that saved · change the final product; and US$87 000 a year--payback period * reuse materials on-site, preferably within was two years; the process (off-site recycling is not part of cleaner production, though it may bring substantial environmental benefits). philosophy, which will lead to a better + the decision to recycle chromium in a Greek tannery reduced chromium pollution and waste from about 30 to selection and planning of technology. Examples of these processes are given in about 4 per cent, and saved This will lead to a reduced need for the box on page 4. US$43 500 a year-payback period was I I months; end-of-pipe technologies and may in some cases even eleiminate the need for them altogether. Individuals and industries may be richly rewarded for taking preventive + a study of painting processes in a environmental action in the form of cleaner Polish steel industry suggests that Cleaner production can be achieved in a production. Experience in both developed changing the painting technology number of different ways, of which the and developing countries shows that this could reduce wastes, cut down on three most important are: new approach not only produces a cleaner solvent and paint use, and save environment but also results in substantial thousands of dollars a year for a * changing attitudes; savings for industry and society (see box capital investment that would be * applying know-how; and right). repaid in a few months. * improving technology. 5 STRATEGIES AND POLICIES FOR CLEANER PRODUCTION Graph on right shows how costs of pollution control technologies keep on increasing while those of cleaner production soon level off Investing in cleaner production has a payback time as a result of lower costs. Investments made in end-of-pipe technologies to control pollution are never paid back 0 0 U Time Source: TME, The Netherlands, 1992 Cleaner production can be-and has already environmentally-benign forms of development been-applied to raw material extraction, Cleaner production manufacturing, agriculture, fisheries, Cleaner production can contribute to the, transportation, tourism, hospitals, energy, sustainable forms of economic development information systems (for example in process endorsed in UNCED's Agenda 21 (see control) and the organization of work. chapters 20, 30 and 34). Cleaner production can minimize or eliminate the o* is the most fundamental approach; need to make trade-offs between economic o leads to product and process CLEANER PRODUCTION AND SUSTAINABLE DEVELOPMENT improvements; * saves on raw materials and energy, and thus reduces production costs; s increases competitiveness through the use of new and improved technologies; *: reduces the need for more restrictions and prohibitions; 4* reduces risks from on- and off-site growth and environment, between worker safety and productivity, and between consumer safety and competition in Both developed and developing countries international markets. Optimizing several have often introduced technologies without goals at the same time in this way leads to realizing how much it was going to cst to 'win-win' situations in which everyone gains. control pollution from them. They have then Cleaner production is such a 'win-win' argued that a trade-off has to be made strategy: it protects the environment, the treatment, storage and disposal of between economic growth and the consumer and the worker while improving toxic wastes; environment, and that some level of pollution industrial efficiency, profitability and must be accepted if reasonable rates of competitiveness. o improves the health and safety of economic growth are to be achieved. This employees; * improves a company's public image; and *: reduces the cost of increasingly expensive end-of-pipe solutions. argument is no longer valid, and the UN Cleaner production is also now especially Conference on Environment and attractive to developing countries and those Development (UNCED), held in Rio de undergoing economic transition because it Janeiro in June 1992, established new goals for provides industries in these countries, for the world community which involve the first time, with an opportunity to 'leap 6 _ ____ _ _ I_ __ r THE NEED FOR CLEANER PRODUCTION frog' over older, more established of a problem rather than address its causes. industries which are still saddled with costly When cleaner production and pollution pollution control technologies. Thus control options that solve the same countries that start to adopt cleaner environmental problems are properly production now will be able to take full evaluated against one another, the cleaner advantage of a rare window of opportunity production options will usually be less which for once favours developments in costly to implement, operate and maintain poorer countries over those in the over the long term (or even the short industrialized nations. term) because of reduced costs for raw material, energy, pollution control, waste WHY INVEST IN CLEANER PRODUCTION? treatment and clean-up, and regulatory compliance. Payback times can vary between a few months to a few years. In Investing in cleaner production, to prevent addition, the environmental benefits and pollution and to improve natural resource performance are greater. use, is cheaper than continuing to rely on increasingly expensive end-of-pipe or This latter benefit can be translated into pollution control technologies. As the graph market opportunities for 'greener' on page 6 shows, the initial investment for products. Systems and products for which pollution control and cleaner production good environmental performance has been processes may be similar. But over time factored in at the 'design' stage will be pollution control costs continue to mount cheaper to operate and maintain, as well as while cleaner production investments level less polluting and therefore less harmful to off. By 1989, the OECD countries alone human health. Cleaner production were spending US$22 billion a year to therefore provides industries with a new control the spread of the 310 million range of benefits (see box on page 6). It tonnes of hazardous wastes generated also introduces them to new tools such as every year. I Life Cycle Assessment and Eco-labelling. As has been said, cleaner production is quite Cleaner production is now especially distinct from the traditional pollution control important for developing countries, many of strategy which relies on 'end-of-pipe' which are expanding industrial production technologies. Cleaner production is inherently quickly. As much is clear from the more preventive, whereas pollution control remarkable increase in the chemical exports strategies accept waste, emissions and to developing countries, which almost effluents as a 'given' and try to find ways to doubled their share of worldwide trade in handle them or minimize their effects. chemicals from 7.4 per cent in 1980 to 12.9 Pollution control technology, once purchased, per cent in 1991.2 With industries expanding is often not properly maintained and its future this fast, it will become imperative that environmental benefits can therefore be developing countries seize the opportunity illusory. This is the inevitable result of a to invest relatively cheaply in cleaner technical fix that seeks to treat the symptoms production now rather than pay heavily later '... at the Beijing Brewery in China, cleaner production techniques, for example, reduced beer losses by nearly 20 per cent, providing annual savings of US$200 000 while at the same time reducing the chemical oxygen demand of wastewaters. These changes required no investments, only management improvements.' 7 I Ii STRATEGIES AND POLICIES FOR CLEANER PRODUCTION 'Industries and nations embracing cleaner production will find that in so doing they for clean-up operations, as the industrialized partly on new or alternative technologies. It nations have had to do. Doing so will also can also be achieved through improved provide developing countries with a management techniques, different forms of competitive edge over those firms long since work organization and many other established and now encumbered with 'software' approaches to industrial products expensive end-of-pipe control technologies. and processes. Cleaner production is as will automatically fulfil many of their international obligations to the environment' much about attitudes, approaches and Cleaner production is also important for management as it is about technology. This the former centrally-planned economies of is why it is called cleaner production and Eastern Europe where a transformation to not cleaner technology. A good example of cleaner production presents different this occurred recently at the Beijing challenges. While it is clear that cleaner Brewery in China, where cleaner production production policies cannot be transferred techniques, for example, reduced beer uncritically from industrialized countries to losses by nearly 20 per cent and thus developing or re-developing nations, provided annual savings of US$200 000 carefully targeted, phased and staged while at the same time reducing the chemical oxygen demand of wastewaters. approaches may be timely, and economically and ecologically beneficial. 3 These changes required no investments, only management improvements. CLEANER PRODUCTION CAN BE PRACTISED NOW technologies do not yet exist and that, FULFILLING INTERNATIONAL OBLIGATIONS where they do exist, they are already Finally, while cleaner production is a means patented and can be obtained only through of improving industrial performance and expensive licences. Both statements are protecting the environment, it is equally an untrue. effective device for complying with the It is often claimed that cleaner production complex array of rules and regulations Cleaner production approaches are widely designed to protect the environment. This is and readily available, and techniques do obviously true, for example, for local exist for identifying and evaluating needed government regulations that specify levels of technologies. While it is true that cleaner permitted discharges into the air and water. production technologies do not yet exist But it is also true of the new and more for all industrial processes and products, it demanding requirements for international is estimated that 70 per cent of all current adherence to conventions on ozone- wastes and emissions from industrial depleting substances, the discharge of toxic processes can be prevented at source by materials, climate change and biodiversity. the use of technically sound and Industries and nations embracing cleaner economically profitable procedures.3 production will find that in so doing they will more easily fulfil many of their Secondly, cleaner production depends only international obligations to the environment. 8 _ _ THE OVERALL STRATEGY Five important steps are involved in trying to do too much too quickly. This establishing the necessary pre-conditions approach also stresses the need to for a cleaner production programme (see distinguish the short from the long term. . -a. a a *.* . a illustration on page II): The long-term goal may be to introduce 4* establish a shared vision of how to cleaner production to every industry in the UNIDO/UNEP are selecting a number of promote cleaner production-'start country through the establishment of key countries for NCPCs from the following small but think big'; advisory and information centres on cleaner short list: :- build a consensus that the best way forward is through cleaner production; * assess the existing system of production and technology, and thus effect a nation-wide transformation of industrial + Brazil practice and philosophy. * China environmental and industrial policy- + India with techniques and procedures for The short-term goal may be simply to set + Indonesia identifying areas and sectors requiring up one effective cleaner production * Mexico change-and take corrective action; demonstration project that will launch a t Tanzania snowball effect throughout a specific region : Zimbabwe · establish cleaner production programmes such as demonstration or industry sector, which will eventually projects and similar small-scale activities; spread to other regions and other US-AID has NCPCs in operation in and industries. - Tunisia * provide long-term finance and technical assistance. *: Chile It is no bad thing to start small, and it is a mistake to imagine that because funds and Malta has funded its own NCPC which is 'Start small but think big' is a strategic human resources are limited nothing can be already in operation. approach that avoids the common pitfall of done. The existence of both the United The Australia Centre for Cleaner Production in Melbourne, Victoria, was established in 1993 and works in close contact with the UNEP *: helps with strategic development, process audits and opportunity Cleaner Production Programme (see box on page 27). Its vision is . provides information and technology transfer; 'to assist industry to achieve the dual goals of international :. maintains close links with UNEP and similar programmes in competitiveness and environmental excellence through cleaner production'. It does this through consultation, education and identification; neighbouring countries; and * catalyses collaboration between suppliers and customers. technology transfer. More specifically, the Centre: The Centre is expected to become self-financing within three *- promotes cleaner production; years, and was initially seeded with money from industry, the *: provides an interface between industry, government and Victoria Environment Protection Authority and the Department of academia; Business and Employment. * helps set up demonstration projects in industry; *. provides practical training courses and workshops; 9 I STRATEGIES AND POLICIES FOR CLEANER PRODUCTION main interest: environment · politicians * government departments concerned with the environment, public health, worker health and safety, and consumers and product safety *: non-government organizations representing the environment and consumers ** consumers *. trade unions o* consultants on the environment National Cleaner Production Centre, for Industry and Environment Programme example, devotes a great deal of its time to within it are proof that small beginnings can presentations, lectures, writing articles and lead to major results. preparing training programmes. An important key to establishing a shared * academics and professionals ESTABLISH A SHARED VISION AND CONSENSUS vision and consensus is for government to The initial task in the development of a priority. Several countries have already shared vision and consensus is to identify done this. For example, the US Pollution proclaim cleaner production as a national key people and key institutions that will Prevention Act of 1990 states that 'The form the backbone of the cleaner Congress hereby declares it to be the production initiative. It may be that the national policy of the United States that people and one of the key institutions can pollution should be prevented or reduced be combined to form the nucleus of a at the source wherever feasible ...'. China, Cleaner Production Centre. This has been Denmark, France, India and Poland (see box done in a number of industrialized countries, on page I) have also made similar main interest industry : politicians + government departments connected with economic and industrial planning, commerce and trade *. multinational corporations * large and small national companies -: joint venture partnerships · industrial managers *: industrial suppliers : industrial consultants ot trade associations *$ Chambers of Commerce + academics including Australia, and in developing pronouncements. At the same time, this countries supported by the joint national priority needs to be translated into UNIDO/UNEP National Cleaner Production action. Inevitably, this means providing Centre Programme (Phase I of which is financial encouragements, for example in sponsored by Austria, Denmark and the the form of grants or low-cost loans, for Netherlands) or the US-AID Environmental industries willing to take the first steps. Pollution Prevention Programme (EP3). Some centres have been financed by the One of the first jobs for any national countries themselves (see box on page 9). cleaner production centre is to set up a cleaner production network to link : professional societies *: financial institutions for venture One of the first jobs of such a centre is to together those interested in the subject publicize, in a joint effort Wvith government, within the country, and to put them in the need for cleaner production and the touch with experts elsewhere. importance of the vision that it entails. It is capital, and national and international loans * insurance companies * trade unions never sufficient simply to approach key many, quite unexpected organizations are ASSESS THE EXISTING SYSTEM likely to become involved in cleaner Before cleaner production policies and leaders in business and government because main interest mixed + the media production programmes. The list on the left programmes can be formulated and + politicians + interministerial committees + local government ·:+ financial institutions + Cleaner Production Centres summarizes some of the more obvious. implemented, governments need to gain a Getting the message across to all these system works. This will reveal a number of groups means that the main job for those obstacles that are likely to hinder adoption who initiate cleaner production approaches of cleaner production, and which will have is information dissemination: Australia's to be removed. In the process the clear understanding of how their existing 10 __ Nations Environment Programme and the ___ _____ _I___ THE OVERALL STRATEGY The overall strategy for cleaner production development chapter. In view of the need for a profound reconstruction of Polish industry, a Declaration on Cleaner Production has been formulated by the Ministry of Environment, Natural Resources and Forestry and the Ministry of Trade and Industry. The aim of this declaration is to develop the economy and preserve the natural environment it is proposed to introduce the principles of preventive environmental management into the production and development programme of companies in order to achieve sustainable industrial development. These principles aim at minimizing solid, liquid and gaseous wastes in the production process, while simultaneously providing economic benefits. For the implementation of the declaration: might be found, for example, in: ESTABLISH CLEANER PRODUCTION PROGRAMMES The Enterprise 4 will prepare and implement a Cleaner Production Project according to the UN methodology; : will introduce the Project into short- * innovation policy; DEVELOP CLEANER PRODUCTION VISION 'START SMALL BUT THINK BIG' PROVIDE LONG-TERM CLEANER FINANCE AND TECHNICAL PRODUCTION ESTABLISH A CONSENSUS ON THE NEED FOR ASSISTANCE DEVELOPMENT CLEANER PRODUCTION A `I ESTABLISH ASSESS THE CLEANER PRODUCTION .4 EXISTING SYSTEM PROGRAMMES opportunity can be taken to introduce cleaner production approaches to industrial point is examined in more detail in the next and environmental legislation, and to develop specific cleaner production initiatives. A bias towards pollution control A cleaner production programme and long-term production and industrial policy; incorporates demonstration projects, development plans and arrange for * raw material pricing; education, training, capacity building, * trade policies; outreach and institution building. For · tax systems; industry, the first job is to carry out the . educational curricula; oenvironmental regulations; and . technology development. same kind of assessment as governments do, but at the manufacturing level. A specific tool, the cleaner production opportunities audit, is available for this Governments must also understand exactly purpose, and has been successfully used in periodical reporting; 4 will designate a supervisor for the Project. Ministry of Environment, Natural Resources and Forestry and Ministry of Trade and Industry : will organize training courses in the methodology of Cleaner Production design; what cleaner production means at the level many demonstration projects. It is used to · will facilitate access to information of industry. This is often misunderstood, examine an industry's production which leads to inadequate policies to processes, evaluate the changes that could about world solutions in this area; *: will support enterprises seeking finance for the most effective undertakings resulting from Cleaner Production Projects. promote cleaner production or to the idea be made and estimate their costs. One such that cleaner production does not warrant manual is available from UNEP and separate attention at the policy level. This UNIDO. 4 In practice, however, there is a II STRATEGIES AND POLICIES FOR CLEANER PRODUCTION The UNEP/UNIDO cleaner production assessment 4 PHASE : PREASSESSMENT need to produce manuals for individual companies take part in the development of countries and, indeed, for different types of policy studies which are then used to industry within each country. Manuals of provide a 'tailor-made' cleaner production this type are now available in a number of policy for each country. The Chinese countries including the Austria, China, project began with a series of wide-ranging s AUDIT PREPARATION Denmark, India, the Netherlands, Norway, : prepare audit team and resources *:4 divide process into unit operations o:* construct process flow diagrams linking unit operations Poland 6 , Sweden, the United Kingdom and i~~ _ _______ ___ -------- ~ ~ ___ PHASE 2: MATERIAL BALANCE United States. 7 In the Netherlands, the · innovation and industrial policies; PRISMA project, working with small and : environmental policies at national level; medium-sized firms, has successfully carried . environmental policies at local level, with some emphasis on the permit system; out assessments and cleaner production PROCESS INPUTS * determine inputs * record water usage 4 measure levels of waste reuse/recycling P~~i~OCESS INPUTS assessments in five major areas: j J demonstration studies in 10 industries. · cleaner production policies abroad; and Details of the UNEP/UNIDO and US · the introduction and implementation of EPA/PRISMA assessment approaches are cleaner production in companies, and illustrated on this and the facing page. the obstacles that arose, on the basis of a series of case histories. I PROCESS OUTPUTS : quantify products/by-products :4 account for wastewater . account for gaseous emissions a& account for off-site wastes i i i i one-off, start to finish procedure. Once the These evaluations are made with the help I assessment has been made, and a cleaner of in-depth interviews with important i I DERIVEA MATERIALBALANCE I *: assemble input and output information I * derive preliminary material balance I : evaluate and refine material ,/ I balance ------------ Note that the assessment process is not a I PHASE 3: SYNTHESIS production approach adopted, the results individuals and collective brainstorming must be monitored and evaluated. This sessions in workshops involving evaluation will provide feedback to improve representatives from industry and the innovations introduced; it will also government. However, a key to their suggest new areas for application of cleaner success was the establishment of a number production concepts. At this point the of cleaner production demonstration assessment cycle should be repeated. projects in individual companies, where the emphasis was on training and education of IDENTIFYWASTEREDUCTION OPTIONS :o identify obvious waste reduction measures - target and characterize problem wastes I *: investigate waste segregation : identify long-term waste reduction measures - Chinese experts and on relatively cheap applied in a much larger project in China, ways of implementing cleaner production, .s,,nnnrtdrihv I INFP/IF and the Wnrlr Rnan notably: (see box on page 27). This project was i EVALUATEWASTEREDUCTION OPTIONS * undertake environmental and economic evaluation of waste reduction options The lessons learned are currently being I designed to pay particular attention to the : management improvements; need for information by policy makers and : good housekeeping; to different dissemination strategies for : substitution of toxic materials; cleaner production. The China project is : process modifications; i : internal reuse of wastes; and part of a well designed demonstration programme in which more than 30 : changes in product design. WASTEREDUCTION ACTION PLAN : design and implement a waste reduction plan to improve process efficiency . 12 Demonstration projects of this kind are The diagram on the left reproduced from the useful in revealing obstacles to progress original publication, uses the term 'waste both within companies and in the reduction' in place of 'cleaner production' relationship of companies to the outside ________________I______ _ THE OVERALL STRATEGY world, notably with local and national production. Many professionals in government agencies. companies and governments do not know These obstacles are different in every how to obtain information about cleaner country. However, demonstration projects production, often because it cuts across the already carried out in Europe and Asia conventional technical, economic, show that five different kinds of obstacles organizational, social psychological, can exist (a finding that has been confirmed environmental and managerial divisions. The US EPA/PRISMA cleaner production approach 5 RECOGNIZE NEED TO PREVENT POLLUTION BY CLEANER I PRODUCTION by research and demonstration projects in a number of developing countries). These Technical obstacles are common because obstacles are: technical changes are often involved in * conceptual; techniques of cleaner production * organizational; assessment and change installations, tools, *: knowledge-based; input materials, processes and products PLANNING AND ORGANIZATION o get management commitment o: establish assessment organization ' set overall assessment goals * overcome barriers : technical; and often reveals technical obstacles, sometimes 4: start preliminary study * economic. at the stage of technology development, cleaner production. The need to master sometimes during demonstration and Governments need to have a clear picture sometimes during dissemination. of these obstacles in order to frame tailormade policies to overcome the obstacles. Economic obstacles are also common, despite the fact that cleaner production usually Conceptual obstacles relate to issues which results in potential savings for both companies regard as important. Conceptual industries and governments. Common obstacles can include a lack of importance economic obstacles include vested interests, given to the environment, resistance to shortage of investment funds, and change, and poor environmental standards incomplete or incorrect allocations of costs in both companies and governments. during the economic analysis of cleaner ASSESSMENT o: collect data on company and its processes : set priorities for flows of raw materials, wastes and emissions 4 select assessment teams :ovisit company facilities : generate cleaner production options Organizational obstacles can be traced back common economic obstacles is a pricing FEASIBILITY ANALYSIS · technical evaluation to the way a company is organized, to the policy that in effect subsidizes the use of 4 economic evaluation ways in which companies work together resources such as energy and, particularly, and the ways in which government's water. production possibilities. One of the most : environmental evaluation * select options for implementation environmental and innovation policies are organized. In government, for example, it is Cleaner production is an approach that can difficult to give cleaner production proper be successfully applied in small and medium- priority if environmental policy is organized sized enterprises as well as in large ones. by individual sector, such as water, air and Indeed, it may be that smaller companies land, because cleaner production covers need to adopt cleaner production them all. approaches more urgently than large ones because small companies rarely have the Knowledge-based obstacles usually relate to a resources to stay in business if they make lack of knowledge about cleaner major mistakes. Adopting cleaner production IMPLEMENTATION * obtain funds * install equipment * implement project * monitor and evaluate results * adapt project as appropriate * plan new projects 13 STRATEGIES AND POUCIES FOR CLEANER PRODUCTION 'Another small UK company, with a staff of only 13 people, has developing a new method of galvanizing steel that eliminates conventional wastes, uses less zinc, gives better process control, reduces labour and provides safer working conditions. The new plant pays for itself within three years, reduces capital investment by two-thirds and costs only 18 percent of the cost of the steel itself, compared to 60 percent with traditionalmethods.' 14 is a way of reducing risks, risks that smaller plant pays for itself within three years, businesses cannot comfortably afford to reduces capital investment by two-thirds take. Heavy fines, for example, imposed on and costs only 18 percent of the cost of the companies producing excessive waste have steel itself, compared to 60 percent with bankrupted many small businesses. traditional methods. There are many examples of successful Kingdom, for example, a small research- PROVIDE LONG-TERM FINANCE AND TECHNICAL ASSISTANCE based company has developed a range of Several types of technical assistance have water-based adhesives to replace solvent- already been mentioned in the description based ones. Users have found that the new of the establishment of a cleaner products have many economic advantages production programme. The emphasis as well as being non-toxic and non- should be on the need for a cleaner polluting: they require three to five times production assessment, cleaner production less drying energy, reduce the need for training and well-designed demonstration safety precautions and solvent-recovery projects. Long-term and ongoing support systems, and save on equipment and raw will also require appropriate institutions, materials. such as a National Cleaner Production cleaner production innovations in small and medium-sized companies. In the United Centre. Another small research team has produced a means of optimizing the performance of Long-term finance is an important aspect of coal-fired cement kilns, thus saving an launching a cleaner production programme, Indonesian company 3 percent in fuel, 40 and can be provided in several ways. First, a percent in off-specification product and long-term commitment to finance a cleaner increasing capacity by 9 percent. Another production programme will show that small UK company, with a staff of only 13 government really does give cleaner people, has developed a new method of production a high priority. Secondly, galvanizing steel that eliminates technical support can be financed by conventional wastes, uses less zinc, gives governments and industry organizations on better process control, reduces labour and a programmatic basis which has more provides safer working conditions. The new impact than the relatively isolated financing 1__1__ ______ THE OVERALL STRATEGY of individual cleaner production events. Thirdly, 'revolving funds' can be established for small and medium-sized companies. The ·money from such funds is used to finance a cleaner production audit and select beneficial options. Companies re-pay the fund from the economies that they achieve. MOVING FORWARD A vision and a series of well designed demonstration projects are sufficient to start the cleaner production ball rolling. In China, progress will be achieved in four stages: preparation, demonstration, policy studies and finally dissemination. Furthermore, although the Chinese project is small in relation to many development projects, it is expected to result in the application of cleaner production in more than 3000 Chinese companies within five years of the start of the project. This is a good example-and there are many others--of how the 'start-small but think big' approach can produce substantial yields. These yields, however, will not be realized unless government has also prepared an appropriate environment in which to plant the seeds of cleaner production. The following chapter analyses the legislative and economic tools available to governments wishing to establish such an environment. 15 A TOOL-BOX OF POLICIES 'While it is industry that ultimately must implement cleaner production, the role of government is to lead by providing an environment that will accelerate the process and encourage industry to initiate its own cleaner production programmes.' While it is industry that ultimately must Regulations have not been introduced on implement cleaner production, the role of such a massive scale in developing government is to lead by providing an countries, and it is not yet clear whether environment that will accelerate the they will need to do so. They certainly do process and encourage industry to initiate not have to be in place before launching a its own cleaner production programmes. cleaner production offensive. The implementation of cleaner production, with The range of tools available for its goals of zero emissions and full recycling, governments trying to catalyse industry to does not necessarily depend on the adopt cleaner production is large, and existence of an extensive regulatory system. different countries will select those Developing countries may well find it more combinations of tools they regard as most feasible to depend on raising awareness of suited to their needs. The boxes on pages the economic benefits implicit in cleaner 18-20 list a number of such policy production. Coupled with suitable support instruments, as examples. The text that measures and the use of external assistance, follows, however, analyses these and other this will be enough to persuade many tools under four different categories: industrial leaders to adopt cleaner production procedures, with regulations *+applying regulations; and economic instruments playing a less * using economic instruments; important role than they have in the : providing support measures; and industrialized countries. * obtaining external assistance. Nevertheless, all four sets of tools are In industrialized countries, the first three of described in detail below since all will be these tools have generally been applied in used to some extent. While regulations and the order given above (see table opposite). economic instruments have been The last tool, obtaining external assistance, extensively used to produce generalized is specially relevant to developing countries environmental improvements, there are and those undergoing economic transition. fewer examples so far of their specific use Governments, in other words, have first to catalyse cleaner production. established regulations designed to limit emissions to the air, water and onto land. They have then introduced economic APPLYING REGULATIONS instruments that encourage the observance Regulations can be used to specify an of these regulations and penalize their environmental goal-such as reduction of infringement Finally, they have provided carbon dioxide emissions to 1985 levels- support for industries to enable the without necessarily stating how the goal is regulations to be more easily met. In the to be achieved or what technology is to be process, developed countries have acquired used to achieve it. Alternatively, regulations extensive and complicated regulatory can specify that a certain technology must systems. be used in certain industries to reduce pollution, but the environmental goal may 16 _- A TOOL-BOX OF POLICIES Differences in the use of policy instruments in the states of the European Union and the United States NL DK SP UK FR BE GE 0 0 O 0 o o o0 · 0 O O 0 · 0 * A ·0 * . · *· · · o 0 A · · o 0 o o o · O O O · · O O O O O · · · · ·0 0 O · 0 * O * O O A 0 · 0 0 0 * 0 · 0 * · A 0 0 0 0 0 0 * 0 * * 0O *· 0 O O O0 0o A 0 0o 0 A O 0 0 0 0 0 0 0 0 0 · * 0 PO IT GR El 0 0 AL 0 0o 0 A o o LU USA Legislation Approval scheme including cleaner technology Voluntary agreements Financial instruments Tax, duties and fees Grants and subsidies Information and education Demonstration projects, processes Demonstration projects, products Consultant support Centres of expertise Newsletters General manuals Industry-specific manuals Databases Videos Conferences and seminars Research and development programmes 6: yes *· *· · * * · * * · A : under preparation 0 · A * 0 * · 0 0 0 0 0 0 0 · 0 O: no activities or no information e 0 O 0 0 · · o 0o 0 0o * * 0 o 0 0 0 0 0 0 0 0 O 0 Sources: Commission of the European Union, DG XI, Waste Management Clean Technologies-Update on Situations in Member States, Brussels, June 1994, draft; and J. Hirschhorn and K. Oldenburg, Prosperity without be left unspecified. The most rigid successful since the clean-up operations regulations specify both the target and the effected in the OECD countries, for technology to be used to achieve it. example, have significantly improved environmental conditions. These countries Specified and negotiated compliance have relied mainly, though not exclusively, on what is known as 'specified compliance': precise and specific demands have been In the industrialized countries, regulatory imposed on the regulated communities, programmes are the foundation on which with little bargaining allowed and few environmental quality has been built. In this exceptions made. This somewhat sense, their use has been relatively authoritarian style of government has Pollution, Nostrand and Reinhold, New York, 1991. Table above gives an overview of the large differences that exist in the use of policy instruments in the European Union Member States and the United States. Cleaner production is an emerging concept which is being steadily incorporated into national policy. The table does not imply anything about the efficiency of the policy instruments in place in each country. 17 STRATEGIES AND POLICIES FOR CLEANER PRODUCTION SA undoubtedly been successful in improving in mind, it is important that governments environmental conditions. However, it has explicitly consider the implications of its drawbacks: the regulated community using these regulations for cleaner tends to become alienated, and united in its production, which may be profound and not immediately apparent; opposition to the rule makers; furthermore, ¢' although it is important for developing ESTABLISH CLEANER this approach encourages the use of PRODUCTION PROGRAMMES expensive pollution control technologies, countries to establish their long-term States and local governments can establish cleaner production programmes. These programmes can be institutionalized within an environmental or industry agency or within an academic institution. The main purpose of these programmes and their centres of expertise is to increase awareness of cleaner production and improve capacity in government institutions and industries. These centres of expertise can also play an important role in research and development on cleaner production, in .the dissemination of information and in training. the adoption of which often reduces the environmental goals, they need to allow budget available for promoting cleaner enough time for these goals to be production; adapting, testing and putting such techniques into practice can also take attained; : stricter requirements can often be made as long as implementing cleaner production. for new industries than for those already Once a pollution control device is in place, established, since the latter have to there is little incentive to pay more money make larger investments to reduce out to reduce the need for the device. emissions; . there is no point in establishing goals if The 'negotiated compliance' approach, by they cannot be implemented and contrast, seeks to obtain compliance by the enforced, and if government is not able use of general and flexible guidelines, and to ensure compliance; this implies that bargaining between the regulators and the regulations must be effectively regulated. This less adversarial approach, of monitored, a process that can prove costly; which the ultimate expression is the REQUIRE CLEANER PRODUCTION AUDITS Require industrial firms to prepare formal cleaner production audits of their plants and set up implementation schemes. voluntary agreement or code of conduct, * it is better to specify progressively may be more useful to governments trying to restrictive performance goals than to promote cleaner production over the long apply static requirements, since the term. In very broad terms, experience in latter often lead companies to apply industrialized countries suggests that specific compliance is the preferred option to achieve PUBLISH ENVIRONMENTAL PERFORMANCE DATA Make public information on the environmental performance of companies and update the information on a regular basis so that the community (and NGOs) know how responsive local companies are to the need to improve their environmental performance. PROVIDE TECHNICAL ASSISTANCE Set up teams of cleaner production experts to provide free advice to industry on how to audit their products urgent, short-term goals while negotiated compliance may be preferable over the long term. But no government currently relies exclusively on either approach. pollution control technologies; 4 goals should be defined so that they , must be achieved first as a result of the adoption of cleaner production, followed by the application of pollution control technology if necessary. * discretionary regulations, which allow General principles flexibility as to how goals are to be A number of general principles surround achieved, are preferable to regulations the efficient use of regulations in developing that specify both what must be done countries and countries in economic and how it is to be done; and transition: * the use of voluntary agreements and codes of conduct, backed up by * since environmental regulations were originally designed with pollution control regulations, should be encouraged in different industry sectors; if compliance with such codes is monitored, unnecessary legislation can 18 be avoided; supporting industry -I- ---- ----- _____ A TOOL-BOX OF POLICIES associations is one effective way of cost or penalty for polluting. Indirectly they stimulating voluntary agreements and also improve the economic rewards for monitoring. adopting or developing cleaner production by lowering the operating costs of cleaner production relative to production systems USING ECONOMIC INSTRUMENTS using polluting technologies. Economic instruments can be used to make Before any of these instruments are applied, the cost of pollution more expensive than governments need to analyse what forms of the cost of cleaner production. They exist economic instrument are already in in two forms: those that provide rewards, operation, either explicitly or implicitly. such as tax rebates, for compliance, and Among the latter are the frequent forms of those that penalize, for example through subsidy used to lower production costs and fines, for non-compliance. The revenue make industry more competitive with generated through the latter should be imports and foreign production in general. used, at least partially, to help develop Many of these policies lead to artificially low cleaner production approaches. prices for resources such as energy and and processes, and how to devise and evaluate cleaner production solutions. REVISE EXISTING LAWS AND REGULATIONS Encourage cleaner production through existing laws and regulations by assigning priority to cleaner production over pollution control, and eliminate the under-pricing of energy, water and raw materials that favours end-of-pipe technology. SET NEW REGULATIONS Set new regulations for specific industries that will require them to adopt cleaner production processes or redesign products to meet new standards. water. As a result, these resources are Economic instruments can be used to shape often used profligately, creating both and direct technological investment, the pollution and shortages. Government purchase and use of materials and energy, assessments are needed of industrial and the management of pollution and waste. policies such as these before other They can provide incentives for cleaner economic instruments are applied. In production or they can, if unwisely general, policies that result in prices that fashioned, subsidize pollution control or reflect the real costs involved should be environmentally-harmful industrial activity implemented before other economic through, for example, inappropriate taxes instruments are employed. and subsidies. Taxes The range of economic instruments includes the following: Taxes on toxic or undesirable inputs and feedstocks, pollution and waste, and energy * taxes; can go a long way towards discouraging * reporting requirements and liability; activities that contaminate the environment * tax incentives; and and work place, contribute to global warming and perpetuate unsafe products. * subsidies. Indirectly, these taxes can establish a more When carefully crafted, these economic attractive economic environment for the instruments discourage polluting development and utilization of cleaner technologies. In theory they are production. instruments that internalize the social cost of production by imposing an economic CHANGE PERMITTING SYSTEM Make sure that a complete cleaner production audit has been conducted to determine what emissions could be prevented. Then set permits allowing emissions of only those wastes that a firm cannot prevent. ENCOURAGE VOLUNTARY REDUCTION SCHEMES Establish a programme to encourage industry voluntarily to reduce the generation of the most toxic pollutants by 50 per cent or more within a few (3-5) years, and publish the results annually (for example, more than 300 chemicals are now included in the toxic release inventory in the United States). Use legislation if goals are not achieved in due time. (continued on page 20) Many industrialized countries have used or 19 1 - 1 1 1 I-- t STRATEGIES AND POLICIES FOR CLEANER PRODUCTION (continued from page 19) MAKE SPECIAL ENFORCEMENT PROVISIONS Help industry by conducting research on major environmental problems, and provide cleaner production support to industries affected by new regulations. Where violations occur, arrange for reductions in fines equal to a percentage of the company's cost of implementing a cleaner production solution to deal with the problem. are considering using emissions taxes. One requirement which have been successful in of the difficulties in applying such taxes is that it is often not politically feasible to set both increasing consumer awareness and in stimulating the development of 'greener' such taxes high enough to achieve specific products. environmental goals. While this is a disadvantage, these taxes can still result in Liability concerns similarly affect the image real reductions in pollution levels, even of the firm but can also exert a powerful though these may not be of the desired direct economic incentive to move away magnitude. In addition, they will raise from polluting technologies and unsafe revenue, and this revenue can be used in products towards cleaner production. The other ways to encourage cleaner success of liability systems, of course, production, for example by financing tax depends on how effective is the CHANGE USE OF TECHNOLOGY STANDARDS rebates for good environmental behaviour enforcement and legal system of the Increase flexibility at company level by formulating standards on the basis of the best available technology and give freedom to industry to select the most appropriate technologies that meet these standards. (this is known in the United States as the country concerned. Several countries have 'feebate' system) or to finance cleaner found that enforcing the concept of 'strict production centres or assistance. liability'-which means that firms are held responsible for all the environmental It is generally best to set taxes at a low damage they cause, even if they have level to start with so that firms have time fulfilled their legal obligations-often leads to adjust, and then to publish a schedule to companies to try to minimize their risks PROVIDE SUBSIDIES higher levels that will allow industry to plan and take preventative measures. A Governments can help companies to pay the costs of complying with environmental regulation by subsidising cleaner production solutions. future policies and investments in a more requirement that a cleaner production effective way. assessment should be carried out and Taxes are an indirect way of influencing production options in a way that affects reported can help to identify cleaner emission levels, and experience has shown process technology choices and reduces the OFFER GRANTS FOR THE DEVELOPMENT OF that their effects are not always predictable. need for end-of-pipe technologies. Both CLEANER PRODUCTION TECHNOLOGY It is therefore important that governments types of report lead to innovations with a Offer grants to firms and research organizations to support the development of cleaner processes and products. make regular evaluations of the effect of strong cleaner production bias. INVEST REVENUES FROM WASTE TREATMENT AND TAXES IN CLEANER PRODUCTION' DEVELOPMENT Government revenues from waste treatment and taxes on the use of toxic materials and/or raw materials including energy can be invested in promoting cleaner production programmes. 20 emissions taxes in case they produce unexpected and unwanted results. Apart from sanctidns for particular activities leading to harm to the environment or Reporting requirements and liability persons, the requirement that companies maintain sufficient capital reserves to cover the cost of possible future pollution damage Reporting requirements for pollution and may provide a more powerful incentive to waste can affect public demand and public move towards cleaner production than tolerance of polluting industries, and this can change the behaviour of firms sanctions alone. Since such a requirement concerned about their public image or firm, national and international lending management-labour relations. Eco-labelling institutions are in a position to encourage schemes are a form of reporting firms to invest in cleaner production. can affect the required capitalization of the A TOOL-BOX OF POLICIES Tax incentives The use of government funds derived from the application of environmental sanctions Preferential tax treatment of expenditures to stimulate research on cleaner production for pollution control equipment has been is attractive (particularly since such used in many countries to encourage firms research is cheaper, and generally more to purchase or install devices to control effective, than basic research). An important emissions. Similar subsidies exist for form of subsidy is thus for government to treating waste. While these provisions have support not only individual research a social purpose, they also create a bias projects, but also to facilitate partnerships (supporting perhaps an already-existing between government and firms and preference on the part of the firms to apply between firms, as well as involve pollution-control solutions rather than consultants, academics and NGOs. change their production systems) away Government and industry can also fashion from adopting cleaner production. Where demonstration projects which show that an cleaner production options exist or could industrial transformation to cleaner easily be developed, this preferential tax production in a specific context can work treatment may provide a perverse incentive and is profitable. Taxes are an indirect way of influencingemission levels, and experience has shown that their effects are not always predictable. It istherefore important that governments make regular evaluations of the effect of emissions taxes in case they produce unexpected and unwanted results.' even though it may have been justified when it was first adopted. Further, policy to accelerate the faster retirement of PROVIDING SUPPORT MEASURES older, polluting technologies and the Although industry is the prime mover in promotion of cleaner production. implementing cleaner production, government should consider revising tax government support can play a critical role, Subsidies providing just that bit extra that industry needs to be persuaded to take the plunge.' Financial subsidies, in the form of low- Attention should be directed at four key interest loans, forgivable loans, direct areas: grants-in-aid, or shared funding can be targeted to specific industries to stimulate * providing information, about both the either technology development or diffusion, technology involved and the as appropriate. Both are needed. environmental tools industry needs to make cleaner production assessments of In countries where central banks are under its activities and products; government control, it is relatively easy to * organizing training on cleaner arrange that financing institutions provide favourable terms for companies wishing to production; o helping to change educational curricula, invest in cleaner production. Where banks in order to integrate the environmental are not under government control, the dimension in all engineering and business process is more complicated, and often involves the establishment of special funding management courses; and * assisting key institutions. 'Incountries where central banks are under government control, it isrelatively easy to arrange that financing institutionsprovide favourable terms for companies wishing to invest in cleaner production. Where banks are not under government control, the process is more complicated, and often involves the establishment of special funding mechanisms under government control.' mechanisms under government control. 21 ----"- -- STRATEGIES AND POLICIES FOR CLEANER PRODUCTION Providing information governments decide to require companies to make such audits, either regularly or for 8 89 One of the most commonly quoted barriers new projects. to cleaner production is lack of information EM ;I i 0 I about appropriate technologies. Regulations requiring environmental impact Publications, newsletters and direct statements for projects undertaken by ICPIC was set up by UNEPIIE in 1990 contacts between cleaner production either government or industry is a familiar and can be accessed by anyone with a experts and both government and industry and well-developed means of evaluating personal computer, a modem and access will be badly needed. This is particularly proposed industrial activities. These have to a telephone line. It is a menu-driven true for small and medium-sized companies. been successfully used to promote pollution system with access to several databases, Guidelines are also important in control, and the challenge now is to use including those on cleaner production communication. The World Bank/ them to promote cleaner production. The case studies, seminars and conferences, UNIDO/UNEP Pollution Prevention and European Bank for Reconstruction and publications, international contacts, Abatement Guidelines are an example of this. Development, operating in Central and Eastern Europe, requires environmental corporate programme summaries and country programme summaries. ICPIC One way of providing this information is impact assessments that include alternative information is soon to be made available establishing clearinghouses for cleaner approaches to production design and on diskette and in printed form. production technologies or cleaner technologies. A comparative environmental production centres. These systems should impact analysis that includes a detailed ICPIC's number in Paris, France, is be interactive, and thus able to accept technology options analysis could help (331) 4579 4059. Further information is information from other countries and promote the development of new available by voice from (331) 4437 1425. international organizations. UNEP maintains technologies for cleaner production. its own clearinghouse, the International 22 _C Cleaner Production Information However, the success of such techniques Clearinghouse, in Paris (see box). UNIDO depends on the quality and user-friendliness runs the Industrial and Technological of the information available and the Information Bank (INTIB) and several expertise of government staff to interpret country-level databases are available. It.is the analysis. Environment agency personnel important that information systems identify should be helped by staff from commerce environmentally unsound practices as well and trade agencies and/or from cleaner as cleaner production technologies. production centres wherever possible. Secondly, most industries need help in, Government may also require a technology locating information about how to assess options analysis from the proponent of a their own environmental impacts. particular technology as well as a Governments can publish and disseminate comparative environmental impact analysis information on how to perform the most so that government can be fully informed of widely used techniques, such as the possible environmental consequences of environmental impact assessments, alternative choices. A technology options technology options analyses, cleaner analysis includes not only the technologies production audits and product life cycle currently used or proposed, but also analyses. This is particularly important if alternative technologies that could be A TOOL-BOX OF POLICIES adopted, adapted or developed. For industry can deepen the understanding of example, proponents of the addition of the roles of each and facilitate meaningful vapour recovery technology to their partnerships in promoting cleaner degreasing operations should also identify production. and evaluate ultrasonic cleaning as an alternative technology. Governments wanting to start up training programmes are encouraged to contact the In comparing alternative technological Cleaner Production Programme in UNEP. approaches, care should be taken to Module 2 of Training Approaches'for Environmental Management in Industry is articulate all the environmental 8 consequences-ecosystem and human devoted to cleaner production. UNEP's health effects in the general environment, Cleaner Production Programme is the work place, and from exposure to developing additional training materials, consumer products. The life cycle approach including modules that will focus on key should be used in the assessment of issues in starting up and implementing technological options. Full life cycle analysis, cleaner production programmes. Another however, is often too expensive, too time valuable source of information is the consuming and demands too much data UNIDO Training Course on Ecologically Sustainable Industrial Development, which collection to be worthwhile in all instances. covers a broad field of environmental issues Organizing training In order to staff an infrastructure dedicated to cleaner production, adequate training including cleaner production. 'Part of any government's long-term plan must be to incorporate environmental concerns into educational curricula in general, and into all engineering and business management courses in particular.' Changing education curricula initiatives must be provided. These Part of any government's long-term plan initiatives should be directed towards must be to incorporate environmental changing both the knowledge and the concerns into educational curricula in attitudes of the managers of firms, general, and into all engineering and government bureaucrats, technologists and business management courses in particular. academics, and NGOs. Those trained in Doing so will eventually eliminate the need science and engineering may not have the for a substantial adult education programme appropriate training to develop cleaner in industry, which will often be needed for production systems. Developed countries some time before industrial managers are just beginning to appreciate that the (particularly in small and medium-sized skills that are required for cleaner firms) can be persuaded to think about production are different from those ,environmental issues in anything but very required for pollution control. negative terms. Furthermore, skills to manage technological change are different from those needed for This implies 'educating the educators' as managing existing production systems well as 'training the trainers'. A programme efficiently. Exchange and rotation of is best worked out jointly between the personnel between government and Ministries of Education, Industry and 23 STRATEGIES AND POLICIES FOR CLEANER PRODUCTION Environment and the National Cleaner specific plant or industry. Yet their Production Centre (if there is one) or a participation is crucial. NGOs may be centre of expertise in another institution. particularly important in building local capacity and pressuring industry to adopt 'NGOs may be particularly important in building local capacity and pressuring industry to adopt cleaner production.' Assisting key institutions cleaner production. Building infrastructure and capacity in Government should support cleaner government, industry and NGOs is essential production networks which may operate on for achieving advances in both development a national, regional or local level. The and environmental protection. creation of interministerial committees or Infrastructure includes both legislative and working groups staffed at the highest level institutional/organizational elements. They is essential. Following this, cleaner must all be in place if the initiatives production centres need to be funded and discussed above are to be implemented established at both the national and regional efficiently. Capacity refers to both levels to demonstrate a commitment to institutional capability and to individual cleaner production and an institutional capabilities in relation to production mechanism for its implementation. systems, policies, initiatives and programmes. These capabilities include Government-as already stressed-needs understanding, assessing, designing, to send strong signals that it intends to implementing, maintaining, monitoring, integrate environmental and industrial evaluating and changing products, processes development policies. Participation of and policies. government, industry, NGOs and others in cleaner production projects may be the 'Technological cooperation with foreign or international partners and financial institutionscan actually stifle, rather than build, local capacity if care is not taken to make it a two-way process.' Small and medium-sized enterprises, which best capacity-building intervention. are responsible for much pollution and Theoretical knowledge and formal waste and which could especially benefit education can only go so far. Learning by from a transformation based on cleaner doing is particularly important for cleaner production, are particularly lacking in the production because both attitudes and the capacity to assess their needs and to knowledge base must be changed. request and process information on cleaner production. Written material, interactive Technological cooperation with foreign or information systems, and contacts with international partners and financial cleaner production centres, consultants, institutions can actually stifle, rather than academics and other firms are all necessary build, local capacity if care is not taken to to bridge the information gap on cleaner make it a two-way process. Furthermore, production. Similarly consumers, workers, where capability development is at the core NGOs and unions may initially lack the of a particular technology transfer activity, a tools and skills necessary to enable them to longer-term commitment is required than is participate as full partners in an industrial usually offered in a single project. transformation based on cleaner production Ultimately, the responsibility for managing on either a broad scale or with regard to a technological change lies with the recipient 24 II 1__1 ___1______1__1__1____________II A TOOL-BOX OF POLICIES country, which must take an active role in done only if the National Plan of a ensuring that technology transfer, whether developing country gives high priority to financed privately or through development cleaner production. Many international assistance, includes a capacity-building institutions, however, are becoming more component. interested in cleaner production. OBTAINING INTERNATIONAL ASSISTANCE The European Bank for Reconstruction and Development, for example, has an ,U ilEl The World Bank environmental mandate to promote The European Bank for Reconstruction and Development environmentally sound and sustainable The European Investment Bank Assistance to developing countries or those development. The Bank lends money or The International Finance Corporation with economies in transition can take the takes an equity position on a country or form of financial aid or transfer of regional project-specific basis in Central and information and know-how, education, Eastern Europe, leaving sectoral and training and hardware. The extent to which structural loans to the World Bank. Both the transfer of financial, intellectual and private and public sector projects are technical resources fosters self-reliance is of sponsored. Project support can be provided key importance in these activities. Capacity- for environmental policy (regulatory) building through technology cooperation formation, environmental infrastructure and must enhance the recipient country's ability services (including the environmental goods to manage technological change, and and services industry), inter-country permeate the culture rather than exist as technical cooperation, the harmonization of an isolated capability in a government regulations and legislation, and sectoral agency or industry. studies. These studies can lead to the The International Monetary Fund The Inter-American Development Bank The Asia Development Bank The Nordic Environmental Financing Corporation The Nordic Investment Bank The Global Environment Facility The US Agency for International Development The Arab Fund for Economic and Social Development financing of future projects. The Bank can International finance Obviously, financial resources are needed reject loans on the basis of environmental impact assessments and can require public participation in its loan agreements. to effect a shift towards cleaner production. The use of domestic funds and other means The World Bank, in contrast, provides of persuasion should be used as a lever to government loans for projects and may access the obviously more substantial funds require full, partial, or no environmental available from international financial lending assessment. The Bank has produced and aid institutions (see box). environmental guidelines that have been used by the Global Environment Facility, a It is important for governments to realize, joint venture with UNEP and UNDP, to however, that most of the funds available provide loans for protecting biodiversity, for environmental purposes are directed at the ozone layer and international waters, pollution control. Thus it may be necessary and for limiting greenhouse gas emissions. to convince lending institutions to alter The Bank also co-sponsored the rules in order to make cleaner production Environmental Action Program for Central investment possible. Of course this can be and Eastern Europe, focusing on policy 25 STRATEGIES AND POLICIES FOR CLEANER PRODUCTION reform, institutional strengthening, and for or work against, beneficial changes in investment. However, this effort relies on the domestic economy. improvements in pollution control rather 'The establishment of government assistance mechanisms to promote the export ofcleaner production technologies by domestic developers would provide not only greater incentives for development, but also revenue that might be used to finance other cleaner production projects.' than fostering pollution prevention and In order to ensure that production cleaner production. technologies imported into a country meet a minimum degree of environmental The US Agency for International performance, it could be required that joint Development supports, among other things, ventures or foreign-owned companies meet the World Environment Centre (founded the same environmental controls as those by UNEP) to conduct studies, conferences, encountered 'at home'. Some multinational and training of both government officials firms, concerned with their image back and environmental managers of firms. It is home, have stated agreement with this sponsoring projects on cleaner production practice and have signed the CERES demonstration, training and technical Principles as an expression of their assistance involving industry, government commitment. This is the practice already and NGOs. US AID has a major initiative required by the OECD Council Acts for called Environmental Pollution Prevention waste management. In the context of Pays (EP3) which is promoting cleaner multilateral lending institutions, the production in several countries. European Bank for Reconstruction and Development requires project sponsors to Access to the right kind of financing is, follow the most stringent regulatory however, still a serious problem. Cleaner requirements among the partners in loans production assessment and capacity building for projects. Import tariffs could be placed should be included in all major projects on products regulated in other jurisdictions, involving national and international business or that are otherwise deemed to prevent inappropriate development in environmentally harmful; even import bans the recipient country. could be instituted. For these trade policies to work, there must be both adequate legal Technology cooperation Technologies can rarely be transferred machinery in place and the expertise to track and assess the import of undesirable production technologies and products. without significant adaptation to developing 26 -- .lsl -"---·-----1Llaprs ··---- "---· ----------------- countries. Not only are local physical Like other economic instruments, trade conditions likely to be different, but also policies can serve a number of other energy availability, labour availability and purposes: to raise revenue, protect factor costs, and technical know-how will domestic industries and to minimize foreign vary considerably from the donor country. influence and maintain the character of a Indeed, economic, social, cultural and country's culture. Already existing tariffs religious factors are of immense importance and barriers could be relaxed in a targeted in designing significant technology transfer manner to encourage specific cleaner mechanisms. Technology transfer from production technologies to penetrate a abroad must complement, not substitute domestic market. Additionally, the --~~~~~_ _ A TOOL-BOX OF POLICIES utilization of a percentage of profits earned medium-sized enterprises in developed by multinational corporations for cleaner countries are playing an increasingly production development or diffusion within important role. They are responsible for 50 the country could be required. per cent of the environmental goods and services in the OECD countries. These The establishment of government assistance goods and services, of course, include both mechanisms to promote the export of pollution control and cleaner production. cleaner production technologies by Unfortunately, many of these firms are not domestic developers would provide not equipped to enter developing countries' only greater incentives for development, markets nor to include a capacity-building but also revenue that might be used to component in their activities involving the finance other cleaner production projects. transfer of technology. Effective transfers 'between North and South should be 'needs While multinational corporations are likely driven' and involve the participation of a to be significant sources of both technology wide range of potential beneficiaries in the transfer and financial assistance, small and formulation of those needs, thereby In 1993, China's National Environmental Protection Agency (NEPA) The main results of the preparation phase were the training of launched a project promoting cleaner production in China. The Chinese experts, a Chinese version of the Cleaner Production Audit project is being co-funded by the World Bank. UNEP plays an Manual for Companies, seven case studies and reports, an action plan advisory role to both the World Bank and NEPA in the design, for introducing cleaner production to China, and a greater preparation and implementation of the project. The project seeks to awareness of cleaner production among high-level Chinese officials. show through training programmes, policy studies and The expected results from the next phase will include: recommendations, and more than 30 demonstrations at company level, that cleaner production is an important option for China. * more trained experts; :* three industry-specific Cleaner Production Audit Manuals; UNEP/IE carried out three missions to China in '1993. Fifteen senior Chinese experts were trained in the cleaner production concept and the use of cleaner production assessments in seven companies. Substantial benefits have already been achieved: * more company-specific reports on successfully implemented cleaner production; *: models for the dissemination of the cleaner production concept to other regions and city areas in China; * a policy study with recommendations on how to improve existing * 67 changes, varying from alterations in operational procedures to modification of process equipment, were implemented without policies and legislation to help industry in implementing cleaner production external funding; *: less than US$S 16 500 was invested and resulted in a saving of more than US$350 000; and * more than 50 per cent of the chemical oxygen demand in the In addition, training materials and videos will be available for Chinese trainers to use in disseminating the results of the project throughout China. waste waters produced was eliminated. 27 s _ II_ _ STRATEGIES AND POLICIES FOR CLEANER PRODUCTION F,t generating a genuine ownership of the that has been organized and financed resulting actions rather than externally- through international organizations. This imposed changes. project is expected to bring cleaner production within five years to more than The Polish Cleaner Production Aside from the provision of funds to finance 3000 Chinese enterprises which are the programme receives financial and technology and information development main sources of pollution in China. As technical assistance from Norway. A year and transfer, optimal use of the experience already mentioned, a number of after the programme begun, participating of international organizations and agencies international organizations are also companies were asked to complete a can also facilitate cleaner production. The cooperating to assist in the development of questionnaire in time for the first OECD Environment and Development national cleaner production centres. national meeting of the cleaner Cooperation Directorates, the United production movement in Poland. Nations Environment Program (UNEP), the The box on the left gives details of another United Nations Development Programme internationally-funded programme: the This meeting was attended by (UNDP), the United Nations Industrial Norway/Poland cleaner production representatives of more than 150 large Development Organization (UNIDO) and programme. industrial companies which have the Commission on Sustainable completed the cleaner production Development (CSD) are rich sources of training and design programme in Poland, ideas and policy options.9 Access to these and which have signed the Polish institutions is easy and can provide declaration on cleaner production (see perspective on constructing the appropriate page It ). About 60 companies had benchmarks against which to evaluate replied to the questionnaire, which potential projects financed by the lending revealed that the savings achieved in the and aid institutions. programme were already more than three times its cost. The box on page 27 provides details of a major cleaner production project in China 28 I- -- CONCLUSIONS Implementing cleaner production requires The first steps are to develop a shared both willingness and capacity on the part of vision and consensus, and to establish a government and industry to bring about a proper climate for financial and technical transformation of their national economies. assistance from both national and foreign This transformation may involve both institutions to facilitate cleaner production. incremental and more radical changes, They must be followed up by the specific require careful targeting, staging and strategies and policy instruments that have phasing-in of different policies and been discussed in this document. The initiatives, and changes in the roles of choice and implementation of specific various stakeholders throughout the measures in a particular country must be transition to a cleaner production economy. individually fashioned. No one formula will Critical to the success of a cleaner apply. The OECD counties are themselves production strategy are: still experimenting with appropriate strategies and policies, and future editions *: a shared vision of how to promote of this publication will be produced to cleaner production-'start small but report on these developments, as well as think big'; on the successes (and failures) of attempts o a consensus that the best way forward is to catalyse the adoption of cleaner through cleaner production; production in developing countries and in *: an assessment of existing policies, countries undergoing economic transition. followed by corrective action; * a series of cleaner production initiatives such as demonstration projects; and *: long-term finance and technical assistance. These essential elements are illustrated in the diagram on page II. 29 - _______··_I - I REFERENCES I. OECD, Technology and Environment: 8. Training Approaches for Environmental Programme of Work, 1991-92, Paris, 1991. Management in Industry, UNEP/WHO/ILO Programme to Train the Trainers in 2. Chemical and Engineering News, 2 August Industrial Environmental Management, Paris, 1993, p. 14. 1994. 3. L. W. Baas, M. van der Belt, D. Huisingh 9. see, for example, Technologies for Cleaner and F. Neumann, Cleaner Production: what Production and Products: Towards Technological some governments are doing and what all Transformation for Sustainable Development, governments can do to promote OECD, Paris, 1994. sustainability, European Water Pollution Control, vol. 2 no. I, 1992. 4. Audit and Reduction Manual for Industrial Pollutants and Wastes, UNEP/ UNIDO, Paris, 1992. 5. see de Hoo, Sybren, and Dielman, Hans, 'Choosing prevention is winning: the organization and results of the Dutch pollution prevention project PRISMA' in Industry and Environment, vol. 15, nos. 1-2, January-June 1992. 6. Z. Novak, Polish Cleaner Production Programme-NGOs in action. In Industry and Environment, Vol. 16, No. 4, October-December 1'993. 7. US EPA, Waste Minimization Opportunity Assessment Manual and Facility Pollution Prevention Guide (May 1992, EPA/600/R92/088). l i I 30 _I_ I __I_ I__ I I -- APPENDIX Participants in the UNEP/IE and OECD Workshop on Policies to Promote Cleaner Production in Developing Countries and Countries in Transition Paris, 7-8 June 1993 ORGANIZATION INDIVIDUAL Central Mining Institute, Poland Professor Zygfryd A. Nowak Department of Environment, Malaysia Ms Wan Ramish Haji Wan Ibrahim, Senior Environmental Control Officer Development Alternatives, India Dr Ashok Khosla, President Environmental Protection Department, Hong Kong Mr J. E. Boxall, Assistant Director Hirschhorn & Associates, United States Dr Joel Hirschhorn Massachusetts Institute of Technology, United States Professor Nick Ashford Professor of Technology, Policy and Industrial Development National Environment Protection Agency, China Ms Wang Ji, Deputy Chief, Urban Environmental Management Division OECD Environment Directorate Ms Rebecca Hanmer Mr Harvey Yakowitz Ms Elaine Geyer Allely Rendan A/S, Denmark Ms Birgitte B. Nelsen 3M Europe Mr Allen Aspengren, Manager, Environment, Health and Safety TNO Centre for Technology and Policy Studies, Netherlands Dr Jacqueline Cramer UNIDO Mr Skip Luken, Senior Environmental Advisor, University of Tokyo, Japan Dr Eng. Kunitoshi Sakurai, Professor of International Environmental Planning, Department of Urban Engineering, University of Tokyo, Japan Dr E. A. Moore, Director, Centre for Resource Management and Environmental Sciences University of the West Indies, West Indies UNEP/IE Ms Jacqueline Aloisi de Larderel Ms Kirsten Oldenburg Mr John Kryger Mr John Skinner Ms Garrette Clark 31 _- FURTHER INFORMATION Further information and advice is available from: UNEP United Nations Environment Programme Industry and Environment Cleaner Production Programme 39-43 quai Andre Citr6en 75739 Paris Cedex 15 France Tel: +331 44 37 14 50 Fax: +331 44 37 14 74 32 __ _ _ ........ U . . . , UNITED NATIONS ENVIRONMENT PROGRAMME INDUSTRY AND ENVIRONMENT 39-43. QUAI ANDRt-CITROEN 7s7tP W!C~FYI -.13 LJIhA 1 1)4437 1450 04 997 F 1)4437 1474 ·_ CIII - -1-M~ KNIA2.